To be a shareholder of LIC, farmers must meet the following criteria:
- farm dairy cows in New Zealand;
- supply milk to a milk processor in New Zealand;
- have an LIC participant code; and
- spend at least $1,000.00 per season on qualifying LIC products and services.
Qualifying Products and Services are provided for in the LIC Group Conditions and Service Rules.
The Share Standard is one share for every $6.25 of qualifying spend, subject to the bands below.
The Share Standard is based on a three-year rolling average of qualifying spend.
Qualifying spend is measured in uniform $5,000.00 bands (with the exception of the lowest band which is between $1,000.00 and $4,999.99). This means you generally only need to adjust your shareholding when you move into a higher band.
The Share Standard
|
Qualifying Expenditure |
Shareholding Requirement |
Qualifying Expenditure |
Shareholding Requirement |
|---|---|---|---|
|
Qualifying Expenditure Minimum Purchases Amounnt to $4,999 |
Shareholding Requirement 160 |
Qualifying Expenditure $30,000 to $34,999 |
Shareholding Requirement 4,800 |
|
Qualifying Expenditure $5,000 to $9,999 |
Shareholding Requirement 800 |
Qualifying Expenditure $35,000 to $39,999 |
Shareholding Requirement 5,600 |
|
Qualifying Expenditure $10,000 to $14,999 |
Shareholding Requirement 1,600 |
Qualifying Expenditure $40,000 to $44,999 |
Shareholding Requirement 6,400 |
|
Qualifying Expenditure $15,000 to $19,999 |
Shareholding Requirement 2,400 |
Qualifying Expenditure $45,000 to $49,999 |
Shareholding Requirement 7,200 |
|
Qualifying Expenditure $20,000 to $24,999 |
Shareholding Requirement 3,200 |
Qualifying Expenditure $50,000 to $54,999 |
Shareholding Requirement 8,000 |
|
Qualifying Expenditure $25,000 to $29,999 |
Shareholding Requirement 4,000 |
Qualifying Expenditure etc |
Each shareholder must hold the prescribed number of Ordinary shares, determined each year in accordance with LIC's Constitution.
Shareholders will be notified around 15 July each year of how many shares you need to hold. You have until 15 October in that year to purchase any additional shares.
If you don’t purchase the required shares, LIC may automatically “share up” on your behalf to meet the Share Standard.
See the LIC Group Conditions and Service Rules for more information about becoming an LIC shareholder, including information on qualifying products and services, and minimum purchases amounts.
New customers can request to purchase LIC shares once they meet the shareholding criteria.
MUFG Corporate Markets (MUFG) manages the LIC share register. After you become a shareholder, MUFG will issue you a FIN (Faster Identification Number) and a CSN (Common Shareholder Number) or registration number.
LIC’s Board of Directors will declare dividends, if any, in July each year.
If a dividend is declared, your entitlement is based on the shares you hold on the first Friday in August (record date). LIC pays the dividend two weeks after the record date.
You can receive the dividend in one of three ways:
- Paid into your bank account;
- A credit to your LIC account; or
- A credit to your Dividend Reinvestment Plan so you can buy more shares
To purchase shares you can contact a share broker or purchase via:
- The Sharesies platform
- LIC’s lead broker, Craig’s Investment Partners (Craigs)
If you stop dairying or no longer meet the shareholding criteria, you can hold your shares until your compulsory sale date (advised in July). The timeframe is approximately 16 ½ months from when you no longer qualify.
To sell shares you can:
- Contact a share broker
- Sell via the Sharesies platform
- Let LIC sell your full share parcel through our lead broker, Craigs Investment Partners. LIC doesn’t facilitate the sale of excess shares (any shares held above the share standard). If you want to sell excess shares you need to contact a share broker directly or trade via the Sharesies platform.
- Opt to sell the shares via the compulsory sale process when you are at your compliance date. LIC will sell the Shares via compulsory sale on your behalf.
You can transfer shares between Participant codes. If both Participant codes belong to the same legal entity, email [email protected] with your instructions for the transfer, including the Names, Participant Codes of the transferor and transferee, as well as the amount of the shares to be transferred.
If the Participant codes belong to different legal entities, complete an Ordinary Share Transfer Form 3
More information
LIC’s current share price can be viewed on the NZX website.
Shareholding and dividend statements can be found in Shareholder Services, or through MUFG’s Investor Centre.
For any further support, reach out to LIC’s Share Registry Team:
[email protected] or 0800 542 742
